Macy’s (M) Reports Second Quarter 2020 Net Loss, Same Store Sales Down 35%

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Macy’s had a bigger-than-expected online boost over the past quarter, even as her stores began to reopen during the coronavirus pandemic.The department store operator’s digital sales were up 53% from a year ago, as more shoppers visited its website to purchase workout clothes and home decor. This helped him report a narrower loss and higher overall revenue than analysts expected.

Still, with so much uncertainty in the industry ahead of the all-important holiday season, chief executive Jeff Gennette said Macy’s is planning cautiously for the rest of 2020 and the company has not provided a financial forecast.

Macy’s shares rose about 5% in pre-market trading.

Here’s how the retailer did in its fiscal second quarter ended Aug. 1 compared to what analysts expected, based on Refinitiv data:

  • Loss per share: 81 cents vs. expected loss of $ 1.77
  • Revenue: $ 3.56 billion vs $ 3.48 billion expected

Macy’s fell to a net loss of $ 431 million, or $ 1.39 per share, from earnings of $ 86 million, or 28 cents per share, a year ago. Excluding one-time charges, it lost 81 cents per share, better than the loss of $ 1.77 per share expected by analysts.

Macy’s net sales fell 35.8% to $ 3.56 billion from $ 5.55 billion a year ago, but that beat expectations by $ 3.48 billion.

Sales online and in Macy’s stores that have been open for at least 12 months, on and no longer licensed, declined 35.1%. Analysts had called for a 28.2% drop, according to Refinitiv estimates.

Macy’s said its digital sales represented 54% of its total comparable sales held, with its stores closed for a period of the quarter.

The company said it ended the second quarter with a strong liquidity position. He had about $ 1.4 billion in cash on his balance sheet.

Its stocks are down 29% from a year ago.

U.S. department stores struggled more than other retailers during the coronavirus crisis. A number, including Neiman Marcus and Stage Stores, filed for bankruptcy in 2020. Increasingly, it seems these companies are not worth saving. Lord & Taylor, after nearly two centuries of activity, announced last week the liquidation of its remaining 38 stores. And discussions between bidders to save JC Penney from bankruptcy stalled, leaving corporate lenders to strike some sort of last-minute deal to survive.

Macy’s stock at the close of the market on Tuesday is down more than 58% this year. It has a market capitalization of $ 2.2 billion.

Find the full Macy’s press release here.

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